Defence giant BAE Systems has won a £1.6 billion contract to supply Hawk aircraft to Saudi Arabia, preventing more than 200 potential job losses at one of its factories, according to MSN News.

Unions welcomed the deal but said it made no difference to the Hawk site at Brough in North Yorkshire, where manufacturing will end under previously announced cutbacks.

Guy Griffiths, BAE's group managing director International, said: "We have a long history in the kingdom of Saudi Arabia and, working with Pilatus, we will provide the RSAF with the best training platforms to meet their requirements.

Conservative MP David Davis, whose Haltemprice and Howden constituency is close to Brough, said: "We are in much better position compared to where we were last year and this is down, more than anything else, to the courage of the workforce.

"They should be proud of all the tough tactics, the demo at the BAE AGM earlier this month, the debate in the Commons last year and articles in the press and the impact that these events have had. These have already changed the attitude of the company. It now looks difficult but possible to get a circumstance where there are very few to no compulsory redundancies. That should now be our target."